Free Research Report as Brookdale Reported Better Than Expected Results

Stock Monitor: Civitas Solutions Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 18, 2017 / Active-Investors free earnings report on Brookdale Senior Living Inc. (NYSE: BKD) ("Brookdale") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=BKD. The Company reported its third quarter fiscal 2017 operating results on November 06, 2017. The senior housing Company adjusted its guidance for the full fiscal year 2017. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Civitas Solutions, Inc. (NYSE: CIVI), which also belongs to the Healthcare sector as the Company Brookdale Senior Living. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Brookdale Senior Living most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

Brookdale's total revenue was $1.18 billion for Q3 2017 compared to $1.25 billion for Q3 2016; topping analysts' expectations of $1.16 billion.

During Q3 2017, Brookdale's resident fees totaled $922.9 million, reflecting a decrease of 11.5% on a y-o-y basis, primarily as a result of the disposition of 136 communities (11,071 units) through asset sales and lease terminations since the beginning of the prior year's same period. The Company's monthly revenue per available room (RevPAR) for the consolidated senior housing portfolio was $3,860 for the reported quarter, up 0.3% on a y-o-y basis, and driven by growth in revenue per occupied room (RevPOR) of 1.9% and a decrease in weighted average unit occupancy of 140 basis points.

Brookdale's facility operating expenses were $650.7 million for Q3 2017, reflecting a decrease of 7.6% on a y-o-y basis, and was primarily due to disposition activities, through asset sales and lease terminations. The Company's combined segments' operating margin was 29.5% for the reported quarter versus 32.5% for Q3 2016.

Brookdale reported a GAAP net loss of $413.89 million, or $2.22 per diluted share, compared to a GAAP net loss of $51.69 million, or $0.28 per share, in Q3 2016. The Company's reported quarter results included $368.6 million of non-cash impairment expenses. Brookdale's losses, adjusted for asset impairment costs, came in at $0.24 per share; topping Wall Street's expectations for a loss of $0.25 per share.

For Q3 2017, Brookdale's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) decreased 29.9% to $141.8 million on a y-o-y basis compared to $202.3 million for Q3 2016. Excluding transaction and strategic project costs of $2.8 million, the Company's adjusted EBITDA was $144.7 million for the reported quarter versus $209.4 million in the year ago comparable period.

Operating Activities

During Q3 2017, Brookdale's revenue for the Consolidated Senior Housing Portfolio segment was $812.3 million, reflecting a drop of 12.2% on a y-o-y basis. The segment's operating income fell 9.0% to $262.4 million on a y-o-y basis for the reported quarter. The segment's same community revenue was down 0.4% on a y-o-y basis for Q3 2017, while same community RevPAR decreased 0.4% in Q3 2017, driven by a decline in weighted average unit occupancy of 160 basis points.

During Q3 2017, Brookdale's Ancillary Services segment's revenue dropped 5.7% to $110.6 million on a y-o-y basis, while its facility operating expenses fell 1.8% on a y-o-y basis for the reported quarter. As a result, the segment's operating income was $9.8 million for Q3 2017, representing a decline of 32.8% versus the operating income of Q3 2016, with an operating margin decreasing to 8.9% from a 12.5% margin for the year-ago corresponding period. The decrease in the Ancillary Services segment's operating income was primarily the result of lower home health volumes.

Portfolio Optimization Activity

During Q3 2017, Brookdale terminated the leases for 9 communities (546 units), including two communities as part of the planned termination of 25 triple net leases with HCP, Inc., announced in November 2016.

During Q3 2017, Brookdale entered into an agreement to sell one community. As of September 30, 2017, the Company had 15 communities (1,508 units) classified as assets held for sale with a carrying value of $106.4 million, and a $50.4 million of associated mortgage debt.

Cash Matters

Brookdale's total liquidity was $899.4 million at September 30, 2017, an increase of $353.4 million from June 30, 2017. The Company's liquidity included $291.6 million of unrestricted cash and cash equivalents, $246.4 million of marketable securities, and $361.5 million of availability on the Company's secured credit facility.

Brookdale's net cash provided by operating activities was $83.2 million, down 16.3% on a y-o-y basis for Q3 2017, and driven primarily by disposition activities and an increase in facility operating expenses at the communities operated during both full periods. The Company's adjusted free cash flow fell $42.0 million to $5.8 million for the reported quarter compared to $47.8 million for Q3 2016. For Q3 2017, Brookdale's adjusted free cash flow included $10.6 million of debt modification costs related to the Company's debt refinancing transactions, and the $9.1 million impact of the hurricanes.

2017 Outlook

Brookdale adjusted its full-year 2017 guidance for adjusted EBITDA, excluding transaction and strategic project costs, to a range of $650 million to $670 million. The Company also adjusted its forecasts for adjusted free cash flow to a band of $80 million to $100 million, reflecting the projected $20 million to $21 million negative impact from the hurricanes and the competitive environment.

Stock Performance Snapshot

December 15, 2017 - At Friday's closing bell, Brookdale Senior Living's stock dropped 1.44%, ending the trading session at $9.61.

Volume traded for the day: 2.40 million shares.

After last Friday's close, Brookdale Senior Living's market cap was at $1.79 billion.

The stock is part of the Healthcare sector, categorized under the Long-Term Care Facilities industry. This sector was up 1.0% at the end of the session.

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